So far on Vista I have only been able to set up the project manually
. There hasn't been any mention as far as I am aware, of being able to successfully create projects in Vista yet using the project Manager. Hopefully Telerik will address this at some point in the future, but in the meantime creating them manually isn't all that difficult, just inconvenient.
So if you use the thread I linked to and this one you should be able to set up a project manually, it is just a case of copying the files, creating a virtual directory and then setting up the script handlers for the .tempate and .rss file mappings.